How to Conduct Performance Appraisals

08/19/08

Few managers look forward to the difficult task of conducting performance appraisals. An evaluation may be seen as a necessary evil, as awkward to give as it is to receive. In some cases, you may be evaluating a friend or colleague with whom you socialize. However, if done properly, a performance appraisal can be a positive experience that is more than just a confirmation of a pay increase. It can enhance employee morale and self-esteem and be used as a tool for motivation and development. Do it wrongly and you may harbor mutual resentment and damage morale, relationships and productivity.

There is no magic formula for giving an effective evaluation, but you can strive for a positive experience for both employee and manager:

Do the appraisal on time. Don’t wait for a call from HR telling you you’re late with an appraisal. Worse yet, don’t wait for the employee to remind you of an overdue evaluation, especially if it is tied to a pay increase.

Prepare for the appraisal. Both you and the employee need adequate time to prepare. Have your employee do a self-appraisal before the meeting. Give yourself adequate time to review the employee’s personnel file and prepare a written evaluation.

Document everything. Make sure there are no surprises. Give regular and frequent feedback throughout the year. During the year leading up to the evaluation, make notes that might affect the appraisal and file them. Don’t rely on memory. As soon as the meeting is over, file notes on what occurred.

Be honest. Don’t gloss over the appraisal just to get it finished. Assessing someone’s weaknesses in a constructive way is a challenge. Give examples of how to improve in specific areas so the employee can remain optimistic.

Stay positive. The review process should not remind the employee of being called into the principal’s office in high school. Praise the employee for past successes and encourage the employee to take advantage of suggestions for even greater contributions to the company and his or her personal development. If a cause for concern arises, focus on finding a solution.

Ask questions. Foster open communication through open-ended questions that encourage discussion. Keep the tone conversational, and openly engage in a two-way dialogue.

Be prepared for negative reactions. Discussing poor performance or inappropriate behavior may result in denial, blame or an emotional outburst. Remain constructive and don’t let the meeting deteriorate.

Close the interview. Summarize the major points and end on an encouraging note, even if the employee is discouraged. Prepare a final appraisal in a timely manner and provide the employee with a copy.

Follow up. Implement a plan for improvement and give feedback throughout the year. Set agreed-upon, measurable goals. Be specific. Seek joint solutions and common objectives and follow up on the results.

A thorough, properly conducted performance appraisal can be a valuable tool to encourage employees and help them advance in their careers. G.Neil provides tools from PerformanceAppraisal Guides to Performance Now! Software to help you conduct fair and accurate evaluations.

Performance Appraisal Guides:

Fast Answers for People Managers
$13.99
Powerful Performance Appraisals
$12.99
Performance Now! Software
$179.00